TSMC quarterly figures: right now the money-printing machine knows no bounds

TSMC quarterly figures: right now the money-printing machine knows no bounds
Image: TSMC

TSMC’s quarterly numbers are once again impressive, with net income of $7.3 billion for the past 90 days. This corresponds to an increase of more than 45% compared to the same quarter of last year, in which the subcontractor also delivered very good figures.

Year-on-year sales increased by almost 36% to 491 billion New Taiwan dollars, which corresponds to 17.57 billion US dollars at the exchange rate of almost 28:1 against the US dollar indicated in the quarterly report. Even more impressive was the profit from the transaction. In operational activities, it increased by almost 49%, but in the end, there is still 45% growth, which corresponds to 7.26 billion US dollars in the end. TSMC has thus once again exceeded its own high expectations in terms of sales, margins and, ultimately, profits.

More wafers with 7nm chips for the PC segment

The increase in revenue is due, among other things, to a 12.5% ​​increase in the volume of wafers that TSMC can post in the first quarter of this year compared to last year. Added to this is the continued extreme demand, which, coupled with rising prices for customers, explains TSMC’s figures.

Quarterly revenue comparison by platform from Q4 to Q1

Quarterly revenue comparison by platform from Q4 to Q1

Revenue by technology level

Revenue by technology level

The detail shows where TSMC can grow the most: the PC segment and the automotive division. It is also surprising that the smartphone sector loses almost nothing, which traditionally collapses in the first quarter for a chipmaker, since most of the novelties of smartphone manufacturers are not expected until much later in the year. . Nevertheless, the PC division managed to land just ahead of smartphones with 41% of wafer sales in the first quarter.

Wafer sales by technology and market
Wafer sales by technology and market (Image: TSMC)

Insights: There’s more to come

The second quarter should also be very good, with sales of up to US$18.2 billion. Manufacturers are still buying at a very high level in order to have security of supply, the TSMC CEO explained during the conference call. However, capacity remains tight throughout the year, CC Wei further confirmed. There are a number of stumbling blocks in the way of capacity expansion, which affect various areas of the supplier industry. TSMC wants to counter this even more aggressively, but priorities for certain customers are still given. However, TSMC does not expect any real issues that could affect production.

Everything is going as planned with the next new N3 and N3E nodes, production will start in the second half of 2022 on a small flame. N2 also has TSMC firmly on display: but before 2025 there will be nothing serial here. Again, the timeline shows that the time needed to implement new manufacturing technologies has also increased significantly at TSMC, giving Intel a slim chance of at least catching up significantly.

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